Bankruptcy Trustee

A bankruptcy trustee is not an employee of the United States (U.S.) federal government but is appointed by the U.S. Trustee, who is an employee of the Department of Justice. The trustee is hired to administer and oversee the bankruptcy process. The role of the Chapter 7 Bankruptcy trustee differs from the role of the Chapter 13 Bankruptcy trustee and Chapter 11 Bankruptcy trustee. The Chapter 7 Bankruptcy trustee represents the interest of the creditors as a group and will evaluate if the debtor has any non-exempt assets to liquidate. The trustee's roles also includes: collecting estate property, examining asset exemptions, selling non-exempt property, and paying the funds to the creditors in priority order. Chapter 7 trustees are appointed for a period of 1 year.

The Chapter 13 trustee is also a non-government employee functioning in a similar capacity as a Chapter 7 trustee by reviewing all submitted schedules and ensuring the bankruptcy filing meets the United States Bankruptcy Code. In addition to these responsibilities, the Chapter 13 trustee must also oversee payments (outlined in the Chapter 13 debt repayment plan) and make sure payments are disbursed appropriately to the Creditor/creditors. Chapter 13 trustees must also attend all bankruptcy hearings for property valuation. Chapter 11 trustees examine the reorganization plans of the company wishing to file bankruptcy, makes sure filing deadlines are met, organizes a committee to help with the case and ensures fraud and other types of abusive behaviors are not committed.